Rail service | American Senate hearings will probe backlogs and disruptions
A committee of U.S. senators was scheduled to begin hearings Sept. 10 on rail service issues affecting the transportation of grain and other American agricultural products.
Republican senator John Thune from South Dakota said the hearings will look at grain car backlogs and other service disruptions that have affected farmers in South Dakota and neighbouring states.
“With the backlog in rail service and grain bins reaching capacity, South Dakota producers have limited storage options for both last year’s and this year’s expected record-breaking harvest,” said Thune in a recent media release.
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“I will continue working with … the Surface Transportation Board (STB) to seek commitments from the railroads to address the backlog of grain orders to minimize the harm that South Dakota producers face in getting their crops to market.”
The senate committee hearing follows closely on the heels of an STB hearing held Sept. 4 in Fargo, North Dakota.
The STB hearing was intended to give shippers and the public an opportunity to express concerns with rail freight service that is affecting the agriculture and energy sectors, as well as other shippers.
U.S. politicians have been discussing shipping issues with various railway companies that operate in the northern United States in hopes of ensuring more reliable service for key shipping groups.
Last week, Republican senator John Hoeven from North Dakota issued a media release encouraging Canadian Pacific Railway to “add resources to meet the growing demand for shipping in North Dakota…”
In a Sept. 2 news release, Hoeven said CP needs to change its method of reserving cars and tracking orders in a way that is fair and transparent to shippers.
“We have pushed BNSF (Burlington Northern Santa Fe Railway) to add resources, which they are doing and we are pushing CP to make the same kind of commitment to meeting the needs of our agriculture shippers,” Hoeven said.
“Our business needs are growing, so Canadian Pacific needs to be clear about how many more railcars, locomotives and personnel they plan to devote to our market.”
Earlier this year, the STB ordered BNSF and CP to submit reports outlining steps that are being taken to address railcar backlogs.
The railways are also required to submit weekly reports that provide updates on outstanding car orders and progress that is being made to reduce railcar backlogs.
As of late August, both BNSF and CP reported progress in reducing open and past-due car orders.
“Over the next couple of weeks, as other customers remove additional open requests, we expect the number of open requests to continue to come down significantly,” CP officials said in the report.
